Residential or commercial property and Conveyances" Subtitle IV. Common Interest Communities" Chapter 18. Residential Or Commercial Property Owners' Association Act" Article 3. Operation and Management of Association" § 55.1-1833. Lien for assessments; foreclosure
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§ 55.1-1833. Lien for assessments; foreclosure.
A. The association will have a lien, as soon as refined, on every lot for overdue evaluations imposed versus that lot in accordance with the provisions of this chapter and all legal provisions of the declaration. The lien, as soon as improved, shall be prior to all other subsequent liens and encumbrances other than (i) property tax liens on that lot, (ii) liens and encumbrances recorded prior to the recordation of the declaration, and (iii) sums unpaid on and owing under any mortgage or deed of trust taped prior to the excellence of such lien. The arrangements of this subsection shall not impact the top priority of mechanics' and materialmen's liens. Notice of a memorandum of lien to a holder of a credit line deed of trust under § 55.1-318 shall be given up the very same style as if the association's lien were a judgment.
B. The association, in order to perfect the lien provided by this area, will submit, before the expiration of 12 months from the time the very first such evaluation ended up being due and payable in the clerk's workplace of the circuit court in the county or city in which such development is located, a memorandum, verified by the oath of the principal officer of the association or such other officer or officers as the statement may specify, which contains the following:
1. The name of the development;
2. A description of the lot;
3. The name or names of the persons constituting the owners of that lot;
4. The amount of unsettled evaluations currently due or previous due relative to such lot together with the date when each fell due;
5. The date of issuance of the memorandum;
6. The name of the association and the name and existing address of the person to call to schedule payment or release of the lien; and
7. A statement that the association is obtaining a lien in accordance with the arrangements of the Residential or commercial property Owners' Association Serve as set forth in Chapter 18 ( § 55.1-1800 et seq.) of Title 55.1.
It will be the duty of the clerk in whose workplace such memorandum is submitted as provided in this area to record and index the like offered in subsection D, in the names of the persons recognized in such memorandum as well as in the name of the association. The expense of recording and launching the memorandum will be taxed against the person discovered liable in any judgment or order implementing such lien.
C. Prior to filing a memorandum of lien, a written notification will be sent to the residential or commercial property owner by certified mail, at the residential or commercial property owner's last known address, informing the residential or commercial property owner that a memorandum of lien will be submitted in the circuit notary's workplace of the appropriate county or city. The notification shall be sent at least 10 days before the actual filing date of the memorandum of lien.
D. Notwithstanding any other provision of this area or any other provision of law needing files to be tape-recorded in the various lien books or the deed books in the clerk's workplace of any court, on or after July 1, 1989, all memoranda of liens emerging under this area will be taped in the deed books in the clerk's workplace. Any memorandum shall be indexed in the general index to deeds, and the basic index will recognize the lien as a lien for lot evaluations.
E. Any lien perfected pursuant to subsection B might be implemented by filing a civil action to perform a judicial foreclosure in the circuit court in the county or city where the lot lies or by nonjudicial foreclosure pursuant to subsections I and J. No foreclosure of any lien improved under this section will be initiated after 120 months from the time when the memorandum of lien was recorded. The filing of a civil action to enforce any such lien by foreclosure through judicial ways or issuance of notification of nonjudicial foreclosure under neighborhood J 1 shall be considered as the institution of an action under this area. Nothing in this subsection shall extend the time within which any such lien may be refined.
F. The judgment or order in an action brought pursuant to this section shall consist of repayment for expenses and reasonable lawyer charges of the dominating party. If the association prevails, it may also recover interest at the legal rate for the amounts protected by the lien from the time each such sum ended up being due and payable.
G. When payment or complete satisfaction is made of a financial obligation protected by any lien perfected pursuant to subsection B, such lien shall be launched in accordance with the arrangements of § 55.1-339. Any lien that is not so launched shall subject the lien lender to the charge stated in subdivision B 1 of § 55.1-339. For the purposes of § 55.1-339, the primary officer of the association, or any other officer or officers as the declaration might define, will be deemed the properly licensed representative of the lien creditor.
H. Nothing in this section will be construed to restrict actions at law to recover amounts for which subsection A develops a lien, maintainable pursuant to § 55.1-1828.
I. The association might perform a judicial or nonjudicial foreclosure sale upon a lot versus which the association has actually perfected one or more liens pursuant to this area if the overall amounts protected remain in excess of $5,000, exclusive of lawyer fees and costs. For purposes of this area, the association shall have the power both to offer and communicate the lot and shall be deemed the lot owner's statutory representative for the function of moving title to the lot.
J. A nonjudicial foreclosure sale shall be conducted in compliance with the following:
1. The association will give notification to the lot owner prior to advertisement needed by neighborhood 4. The notice shall define (i) the financial obligation secured by the perfected lien; (ii) the action required to please the debt secured by the perfected lien; (iii) the date, not less than 60 days from the date the notice is given to the lot owner, by which the debt secured by the lien should be satisfied; and (iv) that failure to please the financial obligation protected by the lien on or before the date defined in the notification might lead to the sale of the lot. The notice shall even more notify the lot owner of the right to bring a court action in the circuit court of the county or city where the lot is situated to assert the nonexistence of a financial obligation or any other defense of the lot owner to the sale.
2. After expiration of the 60-day notice period specified in subdivision 1, the association may designate a trustee to perform the sale. The appointment of the trustee will be filed in the clerk's office of the circuit court in the county or city in which such development is located. It will be the responsibility of the clerk in whose workplace such appointment is submitted to record and index the very same as supplied in subsection D, in the names of the individuals identified in such visit along with in the name of the association. The association, at its alternative, might from time to time get rid of the trustee and appoint a successor trustee.
3. If the lot owner fulfills the conditions specified in this neighborhood prior to the date of the foreclosure sale, the lot owner will can have enforcement of the improved lien stopped prior to the sale of the lot. Those conditions are that the lot owner (i) satisfy the debt protected by lien that is the subject of the nonjudicial foreclosure sale and (ii) pay all expenses and expenses incurred in improving and imposing the lien, including advertising expenses and sensible attorney charges.
4. In addition to the advertisement needed by neighborhood 5, the association shall offer written notice of the time, date, and place of any suggested sale in execution of the lien, including the name, address, and telephone number of the trustee, by hand shipment or by mail to (i) the present owner of the residential or commercial property to be cost his last known address as such owner and address appear in the records of the association, (ii) any lienholder who holds a note against the residential or commercial property secured by a deed of trust tape-recorded a minimum of 30 days prior to the proposed sale and whose address is tape-recorded with the deed of trust, and (iii) any assignee of such a note protected by a deed of trust, provided that the project and address of the assignee are likewise recorded a minimum of 1 month prior to the proposed sale. Mailing a copy of the ad or the notice including the same details to the owner by accredited or signed up mail no less than 2 week prior to such sale and to lienholders and their appoints, at the addresses kept in mind in the memorandum of lien, by United States mail, postage prepaid, no less than 2 week prior to such sale, will be an enough compliance with the requirement of notice.
5. The ad of sale by the association will be in a newspaper having a basic blood circulation in the county or city in which the residential or commercial property to be offered, or any portion of such residential or commercial property, lies pursuant to the list below arrangements:
a. The association shall promote once a week for 4 successive weeks; nevertheless, if the residential or commercial property or some part of such residential or commercial property lies in a city or in a county instantly adjoining to a city, publication of the advertisement on five various days, which might be consecutive days, will be deemed adequate. The sale shall be held on any day following the day of the last ad that is no earlier than eight days following the very first advertisement nor more than 30 days following the last ad.
b. Such advertisement shall be put in that section of the paper where legal notifications appear or where the type of residential or commercial property being sold is generally marketed for sale. The ad of sale, in addition to such other matters as the association finds proper, shall state a description of the residential or commercial property to be offered, which description need not be as substantial as which contained in the deed of trust but shall determine the residential or commercial property by street address, if any, or, if none, will give the general location of the residential or commercial property with recommendation to streets, paths, or understood landmarks. Where offered, tax map identification might be utilized however is not required. The advertisement will also include the date, time, location, and terms of sale and the name of the association. It shall state the name, address, and phone number of the agent, agent, or attorney who might have the ability to respond to queries concerning the sale.
c. In addition to the advertisement required by neighborhoods a and b, the association might further advertise as the association discovers suitable.
6. In the event of postponement of sale, which postponement shall be at the discretion of the association, advertisement of such delayed sale shall be in the same way as the initial ad of sale.
7. Failure to comply with the requirements for ad consisted of in this area shall, upon petition, render a sale of the residential or commercial property voidable by the court.
8. The association will have the following powers and duties upon a sale:
a. Written one-price bids might be made and will be gotten by the trustee from the association or anyone for entry by announcement at the sale. Any person other than the trustee may bid at the foreclosure sale, including an individual who has submitted a composed one-price bid. Upon demand to the trustee, any other bidder in participation at a foreclosure sale will be permitted to inspect written quotes. Unless otherwise offered in the statement, the association might bid to acquire the lot at a foreclosure sale. The association may own, rent, encumber, exchange, sell, or communicate the lot. Whenever the written quote of the association is the greatest quote submitted at the sale, such written quote shall be submitted by the trustee with his account of sale needed under subdivision J 10 and § 64.2-1309. The written quote sent pursuant to this subsection might be prepared by the association, its representative, or its lawyer.
b. The association may require any bidder at any sale to publish a money deposit of as much as 10 percent of the price before his bid is gotten, which shall be refunded to him if the residential or commercial property is not sold to him. The deposit of the successful bidder will be applied to his credit at settlement, or, if such bidder fails to finish his purchase quickly, the deposit shall be used to pay the costs and expenses of the sale, and the balance, if any, will be retained by the association in connection with that sale.
c. The association shall receive and receipt for the proceeds of sale, no purchaser being required to see to the application of the proceeds, and apply the very same in the following order: initially, to the affordable expenditures of sale, including lawyer costs; second, to the satisfaction of all taxes, levies, and assessments, with expenses and interest; 3rd, to the satisfaction of the lien for the owners' evaluations; 4th, to the fulfillment in the order of priority of any staying inferior claims of record; and fifth, to pay the residue of the profits to the owner or his assigns, supplied, nevertheless, that, as to the payment of such residue, the association shall not be bound by any inheritance, design, conveyance, task, or lien of or upon the owner's equity, without actual notice thereof prior to distribution.
9. The trustee will deliver to the buyer a trustee's deed communicating the lot with unique warranty of title. The trustee will not be needed to seize the residential or commercial property prior to the sale of such residential or commercial property or to provide belongings of the lot to the purchaser at the sale.
10. The trustee will file an accounting of the sale with the commissioner of accounts pursuant to § 64.2-1309, and every account of a sale will be recorded pursuant to § 64.2-1310. In addition, the accounting will be made offered for inspection and copying pursuant to § 55.1-1815 upon the written demand of the previous lot owner, the present lot owner, or any holder of a taped lien against the lot at the time of the sale. The association shall maintain a copy of the accounting for a minimum of 12 months following the foreclosure sale.
11. If the sale of a lot is made pursuant to subsection I and the accounting is made by the trustee, the title of the buyer at such sale shall not be disrupted unless within 12 months from the verification of the accounting by the commissioner of accounts the sale is set aside by the court or an appeal is submitted in the Court of Appeals or approved by the Supreme Court and an order is gone into requiring such sale to be reserved.
1989, c. 679, § 55-516; 1991, c. 667; 1997, cc. 760, 766; 2000, c. 905; 2004, cc. 778, 779, 786; 2019, c. 712; 2021, Sp. Sess. I, c.
